Thomson Reuters powers impressive revenue growth with AI

• Thomson Reuters reports an 8% revenue growth in Q3 2024, reaching $1.79 billion, driven by strong demand in legal and financial data services
• The company’s profit growth is fueled by continued investments in generative AI, enhancing product offerings and driving customer demand

What happened

Thomson Reuters reported on Tuesday (November 5) that its revenue for the third quarter of 2024 rose 8% year-on-year to $1.79 billion. This growth exceeded market expectations as the company continues to invest in generative AI. The Toronto-based content and technology company said it will invest more than $200 million in artificial intelligence by 2024. Executives said that’s an increase from more than $100 million in 2023.

Additionally, Thomson Reuters CEO Steve Hasker said in a statement, “We remain focused on driving innovation in our portfolio and markets to better serve our customers. This is evident from the fact that our investment in AI has now increased to more than $200 million by 2024.”

Thomson Reuters’ offerings already include Westlaw AI and CoCounsel. CoCounsel is a chat-based generative artificial intelligence (GenAI) assistant. It can help legal professionals draft documents, sift through research, and find information scattered across sources.

Also read: Thomson Reuters Q3 revenue rises 8% to $1.72 billion, beats expectation

Also read: Thomson Reuters raises full-year targets as company looks to double pace of AI investments

What it’s important

Thomson Reuters’ growth has been supported by its investments in generative artificial intelligence, which highlights broader industry trends. The adoption of AI is critical to maintaining a competitive advantage, especially in data-driven industries. The company’s success demonstrates how large enterprises are using AI to innovate and scale. For smaller companies, such investments are just as important. For example, legal technology company Relativity has successfully integrated AI into its platform to automate document review and e-forensics processes, streamline legal workflows, and reduce costs. This technological advancement allows Relativity to effectively compete with the largest companies in the legal field.

However, as Relativity is small, it must continue to invest heavily in AI to remain competitive. Because companies like Thomson Reuters are enhancing AI capabilities across their broader product lines. Without such investments, smaller companies risk being left behind in an industry that is rapidly adopting AI-driven solutions.

It is important to note that, whether it is a small company like Relativity or a large company like Thomson Reuters, the ability to effectively utilize AI is a key factor in the future success of businesses.